Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 28, 2019 | Oct. 25, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | COHU INC | |
Entity Central Index Key | 0000021535 | |
Trading Symbol | cohu | |
Current Fiscal Year End Date | --12-28 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding (in shares) | 41,266,401 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 28, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 | |
Current assets: | |||
Cash and cash equivalents | $ 145,094 | $ 164,460 | [1] |
Short-term investments | 573 | 560 | [1] |
Accounts receivable, net | 126,474 | 149,276 | [1] |
Inventories | 133,923 | 139,314 | [1] |
Prepaid expenses | 19,129 | 26,206 | [1] |
Other current assets | 2,669 | 1,682 | [1] |
Current assets of discontinued operations (Note 10) | 3,733 | 3,741 | [1] |
Total current assets | 431,595 | 485,239 | [1] |
Property, plant and equipment, net | 70,439 | 74,332 | [1] |
Goodwill | 235,903 | 242,127 | [1] |
Intangible assets, net | 282,488 | 318,961 | [1] |
Other assets | 16,958 | 13,264 | [1] |
Operating lease right of use assets | 34,096 | [1] | |
Noncurrent assets of discontinued operations (Note 10) | 130 | 79 | [1] |
1,071,609 | 1,134,002 | [1] | |
Current liabilities: | |||
Short-term borrowings | 3,241 | 3,115 | [1] |
Current installments of long-term debt | 3,141 | 3,672 | [1] |
Accounts payable | 48,126 | 48,117 | [1] |
Accrued compensation and benefits | 25,432 | 29,402 | [1] |
Accrued warranty | 5,716 | 7,769 | [1] |
Deferred profit | 7,952 | 6,896 | |
Income taxes payable | 6,266 | 11,055 | [1] |
Other accrued liabilities | 38,911 | 50,045 | [1] |
Current liabilities of discontinued operations (Note 10) | 564 | 518 | [1] |
Total current liabilities | 139,349 | 160,589 | [1] |
Accrued retirement benefits | 20,041 | 19,740 | [1] |
Noncurrent deferred gain on sale of facility | 8,776 | [1] | |
Deferred income taxes | 29,804 | 38,942 | [1] |
Noncurrent income tax liabilities | 9,459 | 9,711 | [1] |
Long-term debt | 344,920 | 346,041 | [1] |
Other accrued liabilities | 7,209 | 4,259 | [1] |
Long-term lease liabilities | 29,396 | [1] | |
Noncurrent liabilities of discontinued operations (Note 10) | 34 | [1] | |
Stockholders' equity: | |||
Preferred stock, $1 par value; 1,000 shares authorized, none issued | [1] | ||
Common stock, $1 par value; 60,000 shares authorized, 41,265 shares issued and outstanding in 2019 and 40,763 shares in 2018 | 41,265 | 40,763 | [1] |
Paid-in capital | 428,428 | 419,690 | [1] |
Retained earnings | 62,320 | 111,670 | [1] |
Accumulated other comprehensive loss | (40,260) | (25,880) | |
Total Cohu stockholders' equity | 491,753 | 546,243 | [1] |
Noncontrolling interest | (356) | (299) | [1] |
Total equity | 491,397 | 545,944 | [1] |
$ 1,071,609 | $ 1,134,002 | [1] | |
[1] | Derived from December 29, 2018 audited financial statements |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares shares in Thousands | Sep. 28, 2019 | Dec. 29, 2018 | [1] |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | |
Preferred stock, shares authorized (in shares) | 1,000 | 1,000 | |
Preferred stock, shares issued (in shares) | 0 | 0 | |
Common stock, par value (in dollars per share) | $ 1 | $ 1 | |
Common stock, shares authorized (in shares) | 60,000 | 60,000 | |
Common stock, shares issued (in shares) | 41,265 | 40,763 | |
Common stock, shares outstanding (in shares) | 41,265 | 40,763 | |
[1] | Derived from December 29, 2018 audited financial statements |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Net sales | [1] | $ 143,498 | $ 86,164 | $ 441,318 | $ 281,131 |
Cost and expenses: | |||||
Cost of sales (1) | [2] | 84,565 | 51,142 | 265,564 | 163,742 |
Research and development | 20,483 | 11,088 | 65,324 | 33,914 | |
Selling, general and administrative | 33,690 | 15,899 | 108,404 | 50,988 | |
Amortization of purchased intangible assets | 9,969 | 1,024 | 29,975 | 3,117 | |
Restructuring charges | 814 | 10,720 | |||
149,521 | 79,153 | 479,987 | 251,761 | ||
Income (loss) from operations | (6,023) | 7,011 | (38,669) | 29,370 | |
Other (expense) income: | |||||
Interest expense | (5,000) | (11) | (15,789) | (33) | |
Interest income | 190 | 337 | 603 | 913 | |
Foreign transaction gain (loss) | 1,630 | (232) | 1,302 | 1,220 | |
Income (loss) from continuing operations before taxes | (9,203) | 7,105 | (52,553) | 31,470 | |
Income tax provision | 1,277 | 2,302 | 161 | 6,897 | |
Income (loss) from continuing operations | (10,480) | 4,803 | (52,714) | 24,573 | |
Income from discontinued operations, net of tax | 154 | 342 | |||
Net income (loss) | (10,326) | 4,803 | (52,372) | 24,573 | |
Net income attributable to noncontrolling interest | 142 | 62 | |||
Net income (loss) attributable to Cohu | $ (10,468) | $ 4,803 | $ (52,434) | $ 24,573 | |
Weighted average shares used in computing income (loss) per share: | |||||
Basic (in shares) | 41,229 | 28,948 | 41,075 | 28,814 | |
Diluted (in shares) | 41,229 | 29,770 | 41,075 | 29,650 | |
Cash dividends declared per share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.18 | $ 0.18 | |
Basic: | |||||
Income (loss) from continuing operations before noncontrolling interest (in dollars per share) | (0.25) | 0.17 | (1.28) | 0.85 | |
Income from discontinued operations (in dollars per share) | 0 | 0 | |||
Net income attributable to noncontrolling interest (in dollars per share) | 0 | 0 | |||
Net income (loss) attributable to Cohu (in dollars per share) | (0.25) | 0.17 | (1.28) | 0.85 | |
Diluted: | |||||
Income (loss) from continuing operations before noncontrolling interest (in dollars per share) | (0.25) | 0.16 | (1.28) | 0.83 | |
Income from discontinued operations (in dollars per share) | 0 | 0 | |||
Net income attributable to noncontrolling interest (in dollars per share) | 0 | 0 | |||
Net income (loss) attributable to Cohu (in dollars per share) | $ (0.25) | $ 0.16 | $ (1.28) | $ 0.83 | |
[1] | After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Cohu's historical reported net sales would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly. | ||||
[2] | Excludes amortization of $7,597 and $644 for the three months ended September 28, 2019, and September 29, 2018, respectively, and $22,863 and $1,959 for the nine months ended September 28, 2019, and September 29, 2018, respectively. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Net income (loss) | $ (10,326) | $ 4,803 | $ (52,372) | $ 24,573 |
Net income attributable to noncontrolling interest | 142 | 62 | ||
Net income (loss) attributable to Cohu | (10,468) | 4,803 | (52,434) | 24,573 |
Foreign currency translation adjustments | (13,276) | (475) | (14,854) | (3,435) |
Adjustments related to postretirement benefits | 35 | (24) | 470 | 17 |
Change in unrealized gain/loss on investments | 9 | 7 | ||
Other comprehensive loss, net of tax | (13,241) | (490) | (14,384) | (3,411) |
Other comprehensive loss attributable to noncontrolling interest | (4) | |||
Other comprehensive loss attributable to Cohu | (13,241) | (490) | (14,380) | (3,411) |
Comprehensive income (loss) | (23,567) | 4,313 | (66,756) | 21,162 |
Comprehensive income attributable to noncontrolling interest | 142 | 58 | ||
Comprehensive income (loss) attributable to Cohu | $ (23,709) | $ 4,313 | $ (66,814) | $ 21,162 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total | ||
Balance at Dec. 30, 2017 | $ 28,489 | $ 127,663 | $ 150,726 | $ (17,787) | $ 289,091 | |||
Net income (loss) | 24,573 | 24,573 | ||||||
Changes in cumulative translation adjustment | (3,435) | (3,435) | ||||||
Adjustments related to postretirement benefits, net of tax | 17 | 17 | ||||||
Cash dividends | (5,246) | (5,246) | ||||||
Exercise of stock options | 65 | 575 | 640 | |||||
Shares issued for restricted stock units vested | 473 | (473) | ||||||
Repurchase and retirement of stock | (167) | (3,788) | (3,955) | |||||
Share-based compensation expense | 5,496 | 5,496 | ||||||
Cumulative effect of accounting change(a) at Dec. 30, 2017 | [1] | 1,057 | 1,057 | |||||
Shares issued under ESPP | 41 | 721 | 762 | |||||
Changes in unrealized gains and losses on investments, net of tax | 7 | 7 | ||||||
Balance at Sep. 29, 2018 | 28,901 | 130,194 | 171,110 | (21,198) | 309,007 | |||
Balance at Jun. 30, 2018 | 28,883 | 128,248 | 168,040 | (20,708) | 304,463 | |||
Net income (loss) | 4,803 | 4,803 | ||||||
Changes in cumulative translation adjustment | (475) | (475) | ||||||
Adjustments related to postretirement benefits, net of tax | (24) | (24) | ||||||
Cash dividends | (1,733) | (1,733) | ||||||
Exercise of stock options | 15 | 111 | 126 | |||||
Shares issued for restricted stock units vested | 5 | (5) | ||||||
Repurchase and retirement of stock | (2) | (39) | (41) | |||||
Share-based compensation expense | 1,879 | 1,879 | ||||||
Changes in unrealized gains and losses on investments, net of tax | 9 | 9 | ||||||
Balance at Sep. 29, 2018 | 28,901 | 130,194 | 171,110 | (21,198) | 309,007 | |||
Balance at Dec. 29, 2018 | 40,763 | 419,690 | 111,670 | (25,880) | (299) | 545,944 | [2] | |
Net income (loss) | (52,372) | (52,372) | ||||||
Changes in cumulative translation adjustment | (14,850) | (4) | (14,854) | |||||
Adjustments related to postretirement benefits, net of tax | 470 | 470 | ||||||
Cash dividends | (7,383) | (7,383) | ||||||
Exercise of stock options | 37 | 293 | 330 | |||||
Shares issued for restricted stock units vested | 597 | (597) | ||||||
Repurchase and retirement of stock | (196) | (2,562) | (2,758) | |||||
Share-based compensation expense | 10,861 | 10,861 | ||||||
Cumulative effect of accounting change(a) at Dec. 29, 2018 | [3] | 10,352 | 10,352 | |||||
Shares issued under ESPP | 64 | 743 | 807 | |||||
Noncontrolling interest | 53 | (53) | ||||||
Changes in unrealized gains and losses on investments, net of tax | ||||||||
Balance at Sep. 28, 2019 | 41,265 | 428,428 | 62,320 | (40,260) | (356) | 491,397 | ||
Balance at Jun. 29, 2019 | 41,100 | 425,609 | 75,115 | (27,019) | (356) | 514,449 | ||
Net income (loss) | (10,326) | (10,326) | ||||||
Changes in cumulative translation adjustment | (13,276) | (13,276) | ||||||
Adjustments related to postretirement benefits, net of tax | 35 | 35 | ||||||
Cash dividends | (2,469) | (2,469) | ||||||
Exercise of stock options | 22 | 186 | 208 | |||||
Shares issued for restricted stock units vested | 203 | (203) | ||||||
Repurchase and retirement of stock | (60) | (670) | (730) | |||||
Share-based compensation expense | 3,506 | 3,506 | ||||||
Changes in unrealized gains and losses on investments, net of tax | ||||||||
Balance at Sep. 28, 2019 | $ 41,265 | $ 428,428 | $ 62,320 | $ (40,260) | $ (356) | $ 491,397 | ||
[1] | Cumulative effect of accounting change relates to our adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606). | |||||||
[2] | Derived from December 29, 2018 audited financial statements | |||||||
[3] | Cumulative effect of accounting change relates to our adoption of ASU 2016-02, Leases (Topic 842). |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Retained Earnings [Member] | ||||
Cash dividend, per share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.18 | $ 0.18 |
Cash dividend, per share (in dollars per share) | $ 0.06 | $ 0.06 | $ 0.18 | $ 0.18 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) attributable to Cohu | $ (52,434) | $ 24,573 |
Net income attributable to noncontrolling interest | 62 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
(Gain) loss on disposal of assets | (350) | 29 |
Depreciation and amortization | 45,353 | 7,276 |
Share-based compensation expense | 10,861 | 5,497 |
Amortization of inventory step-up and inventory related charges | 5,939 | |
Deferred income taxes | (7,698) | (253) |
Increase in accrued retiree medical benefits | 281 | |
Changes in other accrued liabilities | 3,999 | (409) |
Changes in other assets | (2,853) | (667) |
Interest capitalized associated with cloud computing implementation | (68) | |
Adjustment to contingent consideration liability | 657 | |
Amortization of debt discounts and issuance costs | 826 | 0 |
Changes in current assets and liabilities, excluding effects from acquisitions: | ||
Accounts receivable | 21,757 | (8,092) |
Other current assets | (7,304) | 328 |
Inventories | (660) | (2,555) |
Deferred profit | 1,096 | (3,463) |
Accounts payable | (2,804) | 1,037 |
Income taxes payable | (3,747) | 3,898 |
Accrued compensation, warranty and other liabilities | (8,818) | 1,351 |
Net cash provided by operating activities | 3,438 | 29,207 |
Cash flows from investing activities, excluding effects from acquisitions: | ||
Purchases of property, plant and equipment | (13,347) | (2,472) |
Purchases of short-term investments | (38,700) | |
Sales and maturities of short-term investments | 59,480 | |
Cash received from sale of fixed assets | 1,519 | 25 |
Net cash provided by (used in) investing activities | (11,828) | 18,333 |
Cash flows from financing activities: | ||
Proceeds from Rasco term loan | 3,720 | |
Cash dividends paid | (7,359) | (5,217) |
Repurchases of common stock, net | (1,212) | (2,553) |
Payment of contingent consideration for Kita | (823) | |
Repayments of long-term debt | (3,598) | (975) |
Net cash used in financing activities | (8,449) | (9,568) |
Effect of exchange rate changes on cash and cash equivalents | (1,812) | (1,563) |
Net increase (decrease) in cash and cash equivalents | (18,651) | 36,409 |
Cash and cash equivalents including discontinued operations at beginning of period | 164,921 | 134,286 |
Cash and cash equivalents including discontinued operations at end of period | 146,270 | 170,695 |
Cash held by discontinued operations at end of period (Note 10) | (1,176) | |
Cash and cash equivalents from continuing operations at end of the period | 145,094 | 170,695 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 14,820 | |
Cash paid for income taxes | 13,275 | 3,549 |
Inventory capitalized as property, plant and equipment | 261 | 514 |
Dividends declared but not yet paid | 2,468 | 1,734 |
Property, plant and equipment purchases included in accounts payable | 853 | 311 |
Capitalized cloud computing service costs included in accounts payable | 2,185 | 1,044 |
Capitalized debt issuance costs included in current other accrued liabilities | $ 1,522 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 28, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 1. Summary of Significant Accounting Policies Basis of Presentation Our fiscal years are based on a 52 53 December. December 29, 2018, September 28, 2019, ( third 2019” first nine 2019” September 29, 2018, ( third 2018” first nine 2018” three nine September 28, 2019 September 29, 2018, 13 39 Our interim results are not December 29, 2018, 2018 10 The condensed consolidated financial statements include the accounts of Cohu and a variable interest entity (“VIE”) that was acquired as part of our acquisition of Xcerra Corporation (“Xcerra”) and in which we have determined we are the primary beneficiary. The non-controlling interest in ALBS Solutions Sdn Bhd (“ALBS”) represents the 80% not Principles of Consolidation for Variable Interest Entities We follow ASC Topic 810 10 15 not As of September 28, 2019 December 29, 2018, one 805, Business Combinations 805” September 28, 2019 December 29, 2018, not third Reclassifications In conjunction with the acquisition of Xcerra we assessed the need to realign our financial statement presentation and certain income statement classifications were adjusted with prior periods reclassified to conform with current period presentation. The changes made were as follows: ● Amortization of intangibles previously were presented in cost of sales and SG&A. These amounts are now presented as a separate line item “Amortization of purchased intangible assets” within operating expenses. ● Gains and losses associated with foreign currency translation and remeasurement were included within SG&A. These amounts are now presented as “Foreign transaction gain (loss)”. A summary of the reclassifications described above and the impact on our condensed consolidated statements of operations is as follows: Three Months Ended As previously published Amortization of purchased intangible assets Foreign transaction gains (loss) As adjusted Cost of sales $ 51,786 (644 ) - $ 51,142 SG&A expense $ 16,511 (380 ) (232 ) $ 15,899 Nine Months Ended As previously published Amortization of purchased intangible assets Foreign transaction gains (loss) As adjusted Cost of sales $ 165,701 (1,959 ) - $ 163,742 SG&A expense $ 50,926 (1,158 ) 1,220 $ 50,988 Concentration of Credit Risk Financial instruments that potentially subject us to significant credit risk consist principally of cash equivalents, short-term investments and trade accounts receivable. We invest in a variety of financial instruments and, by policy, limit the amount of credit exposure with any one Trade accounts receivable are presented net of allowance for doubtful accounts of $0.2 September 28, 2019, $0.3 December 29, 2018. September 28, 2019, may Inventories Inventories are stated at the lower of cost, determined on a first first Inventories by category were as follows ( in thousands September 28, December 29, 2019 2018 Raw materials and purchased parts $ 70,677 $ 60,112 Work in process 44,997 57,953 Finished goods 18,249 21,249 Total inventories $ 133,923 $ 139,314 Property, Plant and Equipment Depreciation and amortization of property, plant and equipment, both owned and under financing lease, is calculated principally on the straight-line method based on estimated useful lives of thirty forty five fifteen three ten not Property, plant and equipment, at cost, consisted of the following (in thousands) September 28, December 29, 2019 2018 Land and land improvements $ 11,916 $ 11,905 Buildings and building improvements 40,187 37,265 Machinery and equipment 63,451 64,791 115,554 113,961 Less accumulated depreciation and amortization (45,115 ) (39,629 ) Property, plant and equipment, net $ 70,439 $ 74,332 Segment Information We applied the provisions of ASC Topic 280, Segment Reporting 280” October 1, 2018, four 280 two Goodwill, Other Intangible Assets and Long-lived Assets We evaluate goodwill for impairment annually and when an event occurs or circumstances change that indicate that the carrying value may not not We conduct our annual impairment test as of October 1st no October 1, 2018 may September 28, 2019, not not. may We evaluate our indefinite-lived intangible assets associated with in-process research and development by comparing the fair value of each project with its carrying value. This evaluation is completed annually and whenever indicators of impairment are present. Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not may not not Product Warranty Product warranty costs are accrued in the period sales are recognized. Our products are generally sold with standard warranty periods, which differ by product, ranging from 12 36 Restructuring Costs We record restructuring activities including costs for one 420 420” Exit or Disposal Cost Obligations. 420 712, Nonretirement Postemployment Benefits. Debt Issuance Costs We capitalized costs related to the issuance of debt. Debt issuance costs directly related to our Term B Loan are presented within noncurrent liabilities as a reduction of long-term debt in our condensed consolidated balance sheets. The amortization of such costs is recognized as interest expense using the effective interest method over the term of the respective debt issue. Amortization related to deferred debt issuance costs and original discount costs was $0.3 $0.8 three nine September 28, 2019. October 1, 2018, no three nine September 29, 2018. Foreign Remeasurement and Currency Translation Assets and liabilities of our wholly owned foreign subsidiaries that use the U.S. Dollar as their functional currency are re-measured using exchange rates in effect at the end of the period, except for nonmonetary assets, such as inventories and property, plant and equipment, which are re-measured using historical exchange rates. Revenues and costs are re-measured using average exchange rates for the period, except for costs related to those balance sheet items that are re-measured using historical exchange rates. Gains and losses on foreign currency transactions are recognized as incurred. During the three nine September 28, 2019, $1.6 $1.3 three nine September 29, 2018, $0.2 $1.2 Share-Based Compensation We measure and recognize all share-based compensation under the fair value method. Our estimate of share-based compensation expense requires a number of complex and subjective assumptions including our stock price volatility, employee exercise patterns (expected life of the options) and related tax effects. The assumptions used in calculating the fair value of share-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Although we believe the assumptions and estimates we have made are reasonable and appropriate, changes in assumptions could materially impact our reported financial results. Reported share-based compensation is classified, in our condensed consolidated financial statements, as follows (in thousands) Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Cost of sales $ 212 $ 125 $ 545 $ 408 Research and development 820 354 2,234 1,098 Selling, general and administrative 2,474 1,401 8,082 3,991 Total share-based compensation 3,506 1,880 10,861 5,497 Income tax benefit (67 ) (115 ) (426 ) (555 ) Total share-based compensation, net $ 3,439 $ 1,765 $ 10,435 $ 4,942 Income (Loss) Per Share Basic income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted income (loss) per share includes the dilutive effect of common shares potentially issuable upon the exercise of stock options, vesting of outstanding restricted stock and performance stock units and issuance of stock under our employee stock purchase plan using the treasury stock method. In loss periods, potentially dilutive securities are excluded from the per share computations due to their anti-dilutive effect. For purposes of computing diluted income (loss) per share, stock options with exercise prices that exceed the average fair market value of our common stock for the period are excluded. For the three nine September 28, 2019, 459,000 487,000 three September 29, 2018, no nine September 29, 2018, 12,000 The following table reconciles the denominators used in computing basic and diluted income (loss) per share ( in thousands) Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Weighted average common shares 41,229 28,948 41,075 28,814 Effect of dilutive securities - 822 - 836 41,229 29,770 41,075 29,650 Cohu has utilized the “control number” concept in the computation of diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is income from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. Leases We adopted ASU 2016 02, 842 December 30, 2018. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the adoption date or the commencement date for leases entered into after the adoption date. As most of our leases do not The operating lease ROU asset also includes any lease payments made, lease incentives, favorable and unfavorable lease terms recognized in business acquisitions and excludes initial direct costs incurred and variable lease payments. Variable lease payments include estimated payments that are subject to reconciliations throughout the lease term, increases or decreases in the contractual rent payments as a result of changes in indices or interest rates and tax payments that are based on prevailing rates. Our lease terms may Leases with an initial term of 12 not We sublease certain leased assets to third None Revenue Recognition Our net sales are derived from the sale of products and services and are adjusted for estimated returns and allowances, which historically have been insignificant. We recognize revenue when the obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our systems, non-system products or services. In circumstances where control is not Revenue for established products that have previously satisfied a customer’s acceptance requirements is generally recognized upon shipment. In cases where a prior history of customer acceptance cannot be demonstrated or from sales where customer payment dates are not Certain of our equipment sales have multiple performance obligations. These arrangements involve the delivery or performance of multiple performance obligations, and transfer of control of performance obligations may Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. At September 28, 2019, $12.2 one 606, not one We generally sell our equipment with a product warranty. The product warranty provides assurance to customers that delivered products are as specified in the contract (an “assurance-type warranty”). Therefore, we account for such product warranties under ASC 460, Guarantees 460 not The transaction price reflects our expectations about the consideration we will be entitled to receive from the customer and may not not Our contracts are typically less than one 606 one Accounts receivable represents our unconditional right to receive consideration from our customer. Payments terms do not one not no no On shipments where sales are not September 28, 2019, $16.2 $8.0 one $5.8 December 29, 2018, $10.8 $6.9 one $2.0 Net sales of our reportable segments, by type, are as follows (in thousands): Three Months Ended Nine Months Ended Net Sales (1) September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Systems: Semiconductor Test & Inspection $ 70,654 $ 42,278 $ 226,749 $ 152,846 PCB Test 6,853 N/A 22,232 N/A Non-systems: Semiconductor Test & Inspection 62,166 43,886 180,343 128,285 PCB Test 3,825 N/A 11,994 N/A Total net sales $ 143,498 $ 86,164 $ 441,318 $ 281,131 ( 1 After the acquisition of Xcerra on October 1, 2018 two Revenue by geographic area based upon product shipment destination ( in thousands Three Months Ended Nine Months Ended Net Sales September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 China $ 31,076 $ 23,628 $ 87,365 $ 63,011 United States 21,918 11,585 58,427 41,725 Taiwan 20,341 5,916 52,513 11,762 Malaysia 12,991 13,682 47,698 38,539 Philippines 12,330 11,158 38,266 31,620 Rest of the World 44,842 20,195 157,049 94,474 Total net sales $ 143,498 $ 86,164 $ 441,318 $ 281,131 A small number of customers historically have been responsible for a significant portion of our net sales. Significant customer concentration information, by reportable segment, is as follows: Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Semiconductor Test & Inspection (1) Customers individually accounting for more than 10% of net sales * one one one Percentage of net sales * 11.2% 11.0% 10.8% PCB Test Customers individually accounting for more than 10% of net sales * N/A * N/A Percentage of net sales * N/A * N/A * No 10% ( 1 After the acquisition of Xcerra on October 1, 2018 two Accumulated Other Comprehensive Loss Our accumulated other comprehensive loss balance totaled approximately $40.3 $25.9 September 28, 2019 December 29, 2018, not first nine 2019 2018 not Retiree Medical Benefits We provide post-retirement health benefits to certain retired executives, one no first nine 2019 2018 not Discontinued Operations Management has determined that the fixtures services business, that was acquired as part of Xcerra, does not December 29, 2018. 10, Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements We adopted ASU 2016 02, 842 December 30, 2018, We made an accounting policy election to not 12 not Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of approximately $30.7 $29.9 December 30, 2018. 840 $10.2 840 $0.5 $0.6 not no Recently Issued Accounting Pronouncements In June 2016, 2016 13, Financial Instruments-Credit Losses (Topic 326 2016 13” May 2019, 2016 13 2019 04, Codification Improvements to Topic 326, 2019 04” 2019 05, Financial Instruments-Credit Losses (Topic 326 2019 05” 2016 13, not December 15, 2019, not In August 2018, 2018 14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans not December 15, 2020 not 2018 14 In August 2018, 2018 13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement not December 15, 2019. 3 not 2018 13 |
Note 2 - Business Acquisitions,
Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets | 9 Months Ended |
Sep. 28, 2019 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | 2. Business Acquisitions, Goodwill and Purchased Intangible Assets Xcerra Pursuant to the Agreement and Plan of Merger (the “Merger Agreement”) dated as of May 7, 2018, October 1, 2018 ( $794.4 Cohu financed the Merger, including all related fees and expenses, with the following: ● $160.5 ● The incurrence of $350.0 ● The issuance of 11,776,149 ● The issuance of 529,995 $0.8 On October 1, 2018, may $350.0 0.25% may not October 1, 2025. 3.00%. may Immediately prior to the Effective Time, each Xcerra RSU that was vested was cancelled and the holder received cash and share consideration for the outstanding shares. Each unvested RSU held by employees of Xcerra were assumed by Cohu and converted into an RSU representing the number of whole shares of Cohu common stock based on a conversion formula resulting in the number of assumed RSUs described above. The acquisition method of accounting is based on ASC 805, 820, Fair Value Measurement 820 ” The acquisition was nontaxable to Cohu and certain of the assets acquired, including goodwill and intangibles, will not ASC 805 805 $25.10 September 28, 2018, ASC 820 820 may not not Under ASC 805, not $0.4 $5.2 first nine September 28, 2019 September 29, 2018, The table below summarizes the assets acquired and liabilities assumed as of the acquisition date, October 1, 2018, in thousands Fair Value at Measurement Adjusted Acquisition Date Period Adjustments* Fair Value Current assets, including cash received $ 375,990 $ 375,990 Property, plant and equipment 40,729 40,729 Other assets 2,109 (1,058 ) 1,051 Intangible assets 321,160 321,160 Goodwill 179,263 1,134 180,397 Total assets acquired 919,251 919,327 Liabilities assumed (124,821 ) (76 ) (124,897 ) Net assets acquired $ 794,430 $ 794,430 * Measurement period adjustments made as a result of obtaining new facts and circumstances related to certain assets acquired and liabilities assumed as of the date of acquisition. The net impact of the measurement period adjustments were offset against goodwill. We recorded a $19.6 The allocation of the intangible assets subject to amortization is as follows (in thousands) Estimated Fair Value Weighted Average Useful Life (years) Developed technology $ 194,600 7.8 Customer relationships 65,890 10.6 In-process research and development 36,360 indefinite Product backlog 6,410 0.8 Trademarks and trade names 16,800 11.0 Favorable leases 1,100 5.5 Total intangible assets $ 321,160 Acquired intangible assets reported above are being amortized using the straight-line method over their estimated useful lives which approximates the pattern of how the economic benefit is expected to be used. This includes amounts allocated to customer relationships because of anticipated high customer retention rates that are common in the semiconductor capital equipment industry. The value assigned to developed technology was determined by using the multi-period excess earnings method under the income approach. Developed technology, which comprises products that have reached technological feasibility, includes the products in Xcerra’s product line. The revenue estimates used to value the developed technology were based on estimates of relevant market sizes and growth factors, expected trends in technology and the nature and expected timing of new product introductions by Xcerra and competitors. The estimated cash flows were based on revenues for the developed technology net of operating expenses and net of contributory asset charges. The discount rate utilized to discount the net cash flows of the developed technology to present value was based on the risk associated with the respective cash flows taking into consideration the perceived risk of the technology relative to the other acquired assets, the weighted average cost of capital, the internal rate of return, and the weighted average return on assets. The value assigned to customer relationships was determined by using the with and without method under the income approach, which analyzes the difference in discounted cash flows generated with the customer relationships in place compared to the discounted cash flows generated without the customer relationships in place. In-process research and development (“IPR&D”) represents the estimated fair value assigned to research and development projects acquired in a business combination that have not no The value assigned to backlog acquired was estimated based upon the contractual nature of the backlog as of October 1, 2018, The value assigned to trademarks and trade names was estimated using the relief-from-royalty method of the income approach. This approach is based on the assumption that in lieu of ownership, a company would be willing to pay a royalty in order to exploit the related benefits of this intangible asset. In our estimate of the fair value of Xcerra’s net assets, Cohu identified leases that appear to be at both favorable and unfavorable rates compared to current market rates. Goodwill and Intangible Assets Changes in the carrying value of goodwill during the year ended December 29, 2018, nine September 28, 2019, in thousands Semiconductor Test & Inspection (1) PCB Test Total Balance, December 30, 2017 $ 65,613 $ - $ 65,613 Additions, net 157,661 21,602 179,263 Impact of currency exchange (2,466 ) (283 ) (2,749 ) Balance, December 29, 2018 220,808 21,319 242,127 Adjustments (2) 2,117 (983 ) 1,134 Impact of currency exchange (6,603 ) (755 ) (7,358 ) Balance, September 28, 2019 $ 216,322 $ 19,581 $ 235,903 ( 1 After the acquisition of Xcerra on October 1, 2018 two ( 2 Amounts represent adjustments made during the post-acquisition measurement period to the preliminary goodwill from the Xcerra acquisition. Purchased intangible assets, subject to amortization are as follows ( in thousands September 28, 2019 December 29, 2018 Remaining Weighted Average Gross Amort. Gross Carrying Accum. Period Carrying Accum. Amount Amort. (in years) Amount Amort. Developed technology $ 223,454 $ 42,021 6.8 $ 214,266 $ 21,197 Customer relationships 71,720 12,815 9.5 73,104 7,378 Trade names 22,384 3,339 9.8 22,701 1,807 Backlog 6,279 6,279 0 6,372 4,696 Favorable leases* - - 4.6 1,100 62 Covenant not-to-compete 326 90 7.3 314 63 Total intangible assets $ 324,163 $ 64,544 $ 317,857 $ 35,203 * Favorable leases were reclassified from intangible assets, net to operating lease right of use assets on December 30, 2018 2016 2, 842 The table above excludes $22.9 $36.3 September 28, 2019 December 29, 2018, nine September 28, 2019, $13.2 Amortization expense related to intangible assets was approximately $10.0 third 2019 $30.0 first nine 2019. $1.0 third 2018 $3.1 first nine 2018. |
Note 3 - Borrowings and Credit
Note 3 - Borrowings and Credit Agreements | 9 Months Ended |
Sep. 28, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 3. Borrowings and Credit Agreements The following table is a summary of our borrowings as of September 28, 2019 December 29, 2018 ( in thousands) September 28, December 29, 2019 2018 (1) Bank Term Loan under Credit Agreement $ 346,500 $ 349,125 Bank Term Loans-Kita 4,042 4,576 Bank Term Loan-Xcerra 1,524 1,839 Bank Term Loan-Rasco 3,720 - Lines of Credit 3,241 3,115 Total debt 359,027 358,655 Less: financing fees and discount (7,725 ) (8,551 ) Less: current portion (6,382 ) (6,676 ) Total long-term debt $ 344,920 $ 343,428 ( 1 Excludes capital lease obligations, which are included in long-term and short-term debt in our consolidated balance sheet, as they were not December 29, 2018. Credit Agreement On October 1, 2018, $350.0 0.25% October 1, 2025. 3.00%. September 28, 2019, $338.8 $2.4 September 28, 2019, $332.2 September 28, 2019 2 2, Kita Term Loans As a result of our acquisition of Kita, we assumed term loans from a series of Japanese financial institutions primarily related to the expansion of Kita’s facility in Osaka, Japan. The loans are collateralized by the facility and land, carry interest rates ranging from 0.05% 0.44%, 2034. September 28, 2019, $4.0 $0.5 September 28, 2019. The term loans are denominated in Japanese Yen and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates. Xcerra Term Loan As a result of our acquisition of Xcerra, we assumed a term loan related to the purchase of Xcerra’s facility in Rosenheim, Germany. The loan is payable over 10 2.35%. March 2024. September 28, 2019, $1.5 $0.3 September 28, 2019. The term loan is denominated in Euros and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates. Rasco Term Loan On July 26, 2019, €3.4 one 10 0.8%. 8 2021. September 2019 December, 2021. September 28, 2019, $3.7 none September 28, 2019. Lines of Credit As a result of our acquisition of Kita, we assumed a series of revolving credit facilities with various financial institutions in Japan. The credit facilities renew monthly and provide Kita with access to working capital totaling up to $8.9 September 28, 2019, $3.3 The revolving lines of credit are denominated in Japanese Yen and, as a result, amounts disclosed herein will fluctuate because of changes in currency exchange rates. Our wholly owned Ismeca subsidiary has one 2.0 September 28, 2019 December 29, 2018 no |
Note 4 - Restructuring Charges
Note 4 - Restructuring Charges | 9 Months Ended |
Sep. 28, 2019 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | 4. Restructuring Charges Subsequent to the acquisition of Xcerra on October 1 st fourth 2018, 2, 2019. second 2019, As a result of the activities described above, we recognized total pretax charges of $10.7 first nine September 28, 2019, 420, Exit or Disposal Cost Obligations 420” Costs associated with restructuring activities are presented in our condensed consolidated statements of operations as restructuring charges, except for certain costs associated with inventory charges related to the decision to end manufacturing of certain of Xcerra’s semiconductor test handler products, which are classified within cost of sales. Other restructuring costs include expenses for professional fees associated with employee severance and impairments of fixed assets. The following table summarizes the activity within the restructuring related accounts for the Integration Program during the three September 28, 2019 (in thousands) Severance and Other Exit Other Payroll Costs Total Balance, December 29, 2018 $ 4,026 $ - $ 4,026 Costs accrued 10,167 553 10,720 Amounts paid or charged (9,251 ) (553 ) (9,804 ) Impact of currency exchange (137 ) - (137 ) Balance, September 28, 2019 $ 4,805 $ - $ 4,805 At September 28, 2019, |
Note 5 - Financial Instruments
Note 5 - Financial Instruments Measured at Fair Value | 9 Months Ended |
Sep. 28, 2019 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | 5. Financial Instruments Measured at Fair Value Our cash, cash equivalents, and short-term investments consisted primarily of cash and other investment grade securities. We do not Gains and losses on investments are calculated using the specific-identification method and are recognized during the period in which the investment is sold or when an investment experiences an other-than-temporary decline in value. Factors that could indicate an impairment exists include, but are not not Investments that we have classified as short-term, by security type, are as follows ( in thousands ) September 28, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses (1) Value Foreign government security $ 573 $ - $ - $ 573 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses (1) Value Foreign government security $ 560 $ - $ - $ 560 ( 1 As of September 28, 2019 December 29, 2018, no Effective maturities of short-term investments are as follows (in thousands) September 28, 2019 December 29, 2018 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due after one year through three years $ 573 $ 573 $ 560 $ 560 Accounting standards pertaining to fair value measurements establish a three 1, 2, 3, no 1. 2. The following table summarizes, by major security type, our financial instruments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands) Fair value measurements at September 28, 2019 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 132,065 $ - $ - $ 132,065 Money market funds - 13,029 - 13,029 Foreign government security - 573 - 573 $ 132,065 $ 13,602 $ - $ 145,667 Fair value measurements at December 29, 2018 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 144,696 $ - $ - $ 144,696 Money market funds - 19,764 - 19,764 Foreign government security - 560 - 560 $ 144,696 $ 20,324 $ - $ 165,020 |
Note 6 - Employee Stock Benefit
Note 6 - Employee Stock Benefit Plans | 9 Months Ended |
Sep. 28, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 6. Employee Stock Benefit Plans Our 2005 “2005 may not September 28, 2019, 2,507,028 2005 Stock Options Stock options may one four 2005 ten first nine 2019 not 36,650 At September 28, 2019, 368,276 $10.34 $1.2 3.0 Restricted Stock Units We grant restricted stock units (“RSUs”) to certain employees, consultants and directors. RSUs vest in annual increments that range from one four not not not September 28, 2019. In the first nine 2019 670,737 560,795 September 28, 2019, 1,331,427 $17.8 1.4 Performance Stock Units We also grant performance stock units (“PSUs”) to senior executives as a part of our long-term equity compensation program. The number of shares of common stock that will ultimately be issued to settle PSUs granted in 2019, 2018 2017 25% 200% three 2019, 2018 2017 100% third We estimated the fair value of the PSUs using a Monte Carlo simulation model on the date of grant. Compensation expense is recognized ratably over the derived service period. New shares of our common stock will be issued on the date the PSUs vest net of the minimum statutory tax withholding requirements to be paid by us on behalf of our employees. As a result, the actual number of shares issued will be fewer than the actual number outstanding at September 28, 2019. In the first nine 2019, 167,226 35,696 September 28, 2019, 364,194 $4.9 1.6 Employee Stock Purchase Plan The Cohu, Inc. 1997 may 85 6 first nine 2019, 63,998 1,034,612 |
Note 7 - Income Taxes
Note 7 - Income Taxes | 9 Months Ended |
Sep. 28, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 7. Income Taxes Ordinarily, interim tax provisions are calculated using the estimated effective tax rate (“ETR”) expected to be applicable for the full fiscal year. However, when a reliable estimate of the annual ETR cannot be made, the actual ETR for the year-to-date period may three nine September 28, 2019, 2019 three nine September 29, 2018, three September 28, 2019 September 29, 2018 13.9 32.4%, 0.3 21.9% nine September 28, 2019 September 29, 2018, 2019 2018 Our German subsidiary’s income tax returns for 2012 2016 There was no three nine September 28, 2019 September 29, 2018. |
Note 8 - Segment and Geographic
Note 8 - Segment and Geographic Information | 9 Months Ended |
Sep. 28, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 8. Segment and Geographic Information The summary below presents our current segments, Semiconductor Test & Inspection and PCB Test, for the three nine September 28, 2019 September 29, 2018. Prior to the acquisition of Xcerra on October 1, 2018, Financial information by reportable segment is as follows (in thousands) Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, Net sales by segment: 2019 2018 2019 2018 Semiconductor Test & Inspection $ 132,820 $ 86,164 $ 407,092 $ 281,131 PCB Test 10,678 - 34,226 - Total consolidated net sales for reportable segments $ 143,498 $ 86,164 $ 441,318 $ 281,131 Segment profit (loss) before tax: Semiconductor Test & Inspection $ (2,929 ) $ 9,941 $ (32,373 ) $ 41,073 PCB Test 612 - 2,371 - Profit (loss) for reportable segments (2,317 ) 9,941 (30,002 ) 41,073 Other unallocated amounts: Corporate expenses (2,076 ) (3,162 ) (7,365 ) (10,483 ) Interest expense (5,000 ) (11 ) (15,789 ) (33 ) Interest income 190 337 603 913 Income (loss) from continuing operations before taxes $ (9,203 ) $ 7,105 $ (52,553 ) $ 31,470 The following table summarizes our total assets by reportable business segment (in thousands) September 28, December 29, 2019 2018 Semiconductor Test & Inspection $ 994,248 $ 1,038,053 PCB Test 57,739 57,762 Total assets for reportable segments 1,051,987 1,095,815 Corporate, principally cash and investments 15,759 34,367 Discontinued operations 3,863 3,820 Total consolidated assets $ 1,071,609 $ 1,134,002 For revenues by geography and information on customer concentration, see Note 1, |
Note 9 - Leases
Note 9 - Leases | 9 Months Ended |
Sep. 28, 2019 | |
Notes to Financial Statements | |
Lessee, Leases [Text Block] | 9. Leases We lease certain of our facilities, equipment and vehicles under non-cancelable operating and finance leases. Leases with initial terms with 12 not Our leases have remaining lease terms of 1 38 one 25 We sublease certain leased assets to third (in thousands) Classification September 28, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 34,096 Finance lease assets Property, plant and equipment, net (1) 2,482 Total lease assets $ 36,578 Liabilities Current Operating Other accrued liabilities $ 5,358 Finance Other accrued liabilities 2,528 Noncurrent Operating Long-term lease liabilities 29,397 Total lease liabilities $ 37,283 Weighted-average remaining lease term (years) Operating leases 7.9 Finance leases 0.8 Weighted-average discount rate Operating leases 6.3 % Finance leases 4.5 % ( 1 Finance lease assets are recorded net of accumulated amortization of $0.1 The components of lease expense were as follows: Three Months Ended Nine Months Ended (in thousands) September 28, 2019 September 28, 2019 Operating leases (1) $ 2,142 $ 6,381 Variable lease expense 570 1,765 Short-term operating leases 80 224 Finance leases Amortization of leased assets 20 82 Interest on lease liabilities 29 117 Sublease income (31 ) (101 ) Net lease cost $ 2,810 $ 8,468 ( 1 Operating lease cost excludes impairment expense of $0.2 Future minimum lease payments at September 28, 2019, Operating Finance (in thousands) leases (1) leases Total 2019 $ 1,709 $ 37 $ 1,746 2020 7,133 2,576 9,709 2021 5,816 - 5,816 2022 5,369 - 5,369 2023 4,940 - 4,940 Thereafter 21,007 - 21,007 Total lease payments 45,974 2,613 48,587 Less: Interest (11,219 ) (85 ) (11,304 ) Present value of lease liabilities $ 34,755 $ 2,528 $ 37,283 ( 1 Excludes sublease income of $0.1 2020 2021. Supplemental cash flow information related to leases was as follows: Nine Months Ended (in thousands) September 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,153 Operating cash flows from finance leases $ 109 Financing cash flows from finance leases $ 25 Leased assets obtained in exchange for new operating lease liabilities $ 39,815 |
Note 10 - Discontinued Operatio
Note 10 - Discontinued Operations | 9 Months Ended |
Sep. 28, 2019 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 10. Discontinued Operations On October 1, 2018, fourth 2018, not not October 1, 2018. 12 Balance sheet information for our fixtures services business presented as discontinued operations is summarized as follows (in thousands) September 28, December 29, 2019 2018 Assets: Cash and cash equivalents $ 1,176 $ 461 Accounts receivable, net 1,466 1,718 Inventories 1,074 1,388 Other current assets 17 174 Total current assets 3,733 3,741 Property, plant and equipment, net 40 66 Other noncurrent assets 90 13 Total assets $ 3,863 $ 3,820 Liabilities: Other accrued current liabilities $ 564 $ 518 Total current liabilities 564 518 Noncurrent liabilities 34 - Total liabilities $ 598 $ 518 Operating results of our discontinued segment are summarized as follows (in thousands) Three Months Ended Nine Months Ended September 28, September 28, 2019 2019 Net sales $ 1,720 $ 5,020 Operating income before income taxes $ 173 $ 400 Income tax provision 19 58 Income, net of tax $ 154 $ 342 |
Note 11 - Contingencies
Note 11 - Contingencies | 9 Months Ended |
Sep. 28, 2019 | |
Notes to Financial Statements | |
Contingencies Disclosure [Text Block] | 11. Contingencies From time-to-time we are involved in various legal proceedings, examinations by various tax authorities and claims that have arisen in the ordinary course of our business. The outcome of any litigation is inherently uncertain. While there can be no not |
Note 12 - Guarantees
Note 12 - Guarantees | 9 Months Ended |
Sep. 28, 2019 | |
Notes to Financial Statements | |
Commitments Contingencies and Guarantees [Text Block] | 12. Guarantees Product Warranty Our products are generally sold with warranty periods that range from 12 36 460, not Changes in accrued warranty were as follows ( in thousands Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Balance at beginning of period $ 6,852 $ 4,948 $ 8,014 $ 4,848 Warranty expense accruals 1,137 1,600 4,695 4,988 Warranty payments (2,071 ) (1,946 ) (6,791 ) (5,234 ) Balance at end of period $ 5,918 $ 4,602 $ 5,918 $ 4,602 Accrued warranty amounts expected to be incurred after one $0.2 September 28, 2019 December 29, 2018. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 28, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation Our fiscal years are based on a 52 53 December. December 29, 2018, September 28, 2019, ( third 2019” first nine 2019” September 29, 2018, ( third 2018” first nine 2018” three nine September 28, 2019 September 29, 2018, 13 39 Our interim results are not December 29, 2018, 2018 10 The condensed consolidated financial statements include the accounts of Cohu and a variable interest entity (“VIE”) that was acquired as part of our acquisition of Xcerra Corporation (“Xcerra”) and in which we have determined we are the primary beneficiary. The non-controlling interest in ALBS Solutions Sdn Bhd (“ALBS”) represents the 80% not |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Principles of Consolidation for Variable Interest Entities We follow ASC Topic 810 10 15 not As of September 28, 2019 December 29, 2018, one 805, Business Combinations 805” September 28, 2019 December 29, 2018, not third |
Reclassification, Policy [Policy Text Block] | Reclassifications In conjunction with the acquisition of Xcerra we assessed the need to realign our financial statement presentation and certain income statement classifications were adjusted with prior periods reclassified to conform with current period presentation. The changes made were as follows: ● Amortization of intangibles previously were presented in cost of sales and SG&A. These amounts are now presented as a separate line item “Amortization of purchased intangible assets” within operating expenses. ● Gains and losses associated with foreign currency translation and remeasurement were included within SG&A. These amounts are now presented as “Foreign transaction gain (loss)”. A summary of the reclassifications described above and the impact on our condensed consolidated statements of operations is as follows: Three Months Ended As previously published Amortization of purchased intangible assets Foreign transaction gains (loss) As adjusted Cost of sales $ 51,786 (644 ) - $ 51,142 SG&A expense $ 16,511 (380 ) (232 ) $ 15,899 Nine Months Ended As previously published Amortization of purchased intangible assets Foreign transaction gains (loss) As adjusted Cost of sales $ 165,701 (1,959 ) - $ 163,742 SG&A expense $ 50,926 (1,158 ) 1,220 $ 50,988 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk Financial instruments that potentially subject us to significant credit risk consist principally of cash equivalents, short-term investments and trade accounts receivable. We invest in a variety of financial instruments and, by policy, limit the amount of credit exposure with any one Trade accounts receivable are presented net of allowance for doubtful accounts of $0.2 September 28, 2019, $0.3 December 29, 2018. September 28, 2019, may |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost, determined on a first first Inventories by category were as follows ( in thousands September 28, December 29, 2019 2018 Raw materials and purchased parts $ 70,677 $ 60,112 Work in process 44,997 57,953 Finished goods 18,249 21,249 Total inventories $ 133,923 $ 139,314 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Depreciation and amortization of property, plant and equipment, both owned and under financing lease, is calculated principally on the straight-line method based on estimated useful lives of thirty forty five fifteen three ten not Property, plant and equipment, at cost, consisted of the following (in thousands) September 28, December 29, 2019 2018 Land and land improvements $ 11,916 $ 11,905 Buildings and building improvements 40,187 37,265 Machinery and equipment 63,451 64,791 115,554 113,961 Less accumulated depreciation and amortization (45,115 ) (39,629 ) Property, plant and equipment, net $ 70,439 $ 74,332 |
Segment Reporting, Policy [Policy Text Block] | Segment Information We applied the provisions of ASC Topic 280, Segment Reporting 280” October 1, 2018, four 280 two |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill, Other Intangible Assets and Long-lived Assets We evaluate goodwill for impairment annually and when an event occurs or circumstances change that indicate that the carrying value may not not We conduct our annual impairment test as of October 1st no October 1, 2018 may September 28, 2019, not not. may We evaluate our indefinite-lived intangible assets associated with in-process research and development by comparing the fair value of each project with its carrying value. This evaluation is completed annually and whenever indicators of impairment are present. Long-lived assets, other than goodwill, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets might not may not not |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranty Product warranty costs are accrued in the period sales are recognized. Our products are generally sold with standard warranty periods, which differ by product, ranging from 12 36 |
Costs Associated with Exit or Disposal Activities or Restructurings, Policy [Policy Text Block] | Restructuring Costs We record restructuring activities including costs for one 420 420” Exit or Disposal Cost Obligations. 420 712, Nonretirement Postemployment Benefits. |
Debt, Policy [Policy Text Block] | Debt Issuance Costs We capitalized costs related to the issuance of debt. Debt issuance costs directly related to our Term B Loan are presented within noncurrent liabilities as a reduction of long-term debt in our condensed consolidated balance sheets. The amortization of such costs is recognized as interest expense using the effective interest method over the term of the respective debt issue. Amortization related to deferred debt issuance costs and original discount costs was $0.3 $0.8 three nine September 28, 2019. October 1, 2018, no three nine September 29, 2018. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Remeasurement and Currency Translation Assets and liabilities of our wholly owned foreign subsidiaries that use the U.S. Dollar as their functional currency are re-measured using exchange rates in effect at the end of the period, except for nonmonetary assets, such as inventories and property, plant and equipment, which are re-measured using historical exchange rates. Revenues and costs are re-measured using average exchange rates for the period, except for costs related to those balance sheet items that are re-measured using historical exchange rates. Gains and losses on foreign currency transactions are recognized as incurred. During the three nine September 28, 2019, $1.6 $1.3 three nine September 29, 2018, $0.2 $1.2 |
Share-based Payment Arrangement [Policy Text Block] | Share-Based Compensation We measure and recognize all share-based compensation under the fair value method. Our estimate of share-based compensation expense requires a number of complex and subjective assumptions including our stock price volatility, employee exercise patterns (expected life of the options) and related tax effects. The assumptions used in calculating the fair value of share-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. Although we believe the assumptions and estimates we have made are reasonable and appropriate, changes in assumptions could materially impact our reported financial results. Reported share-based compensation is classified, in our condensed consolidated financial statements, as follows (in thousands) Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Cost of sales $ 212 $ 125 $ 545 $ 408 Research and development 820 354 2,234 1,098 Selling, general and administrative 2,474 1,401 8,082 3,991 Total share-based compensation 3,506 1,880 10,861 5,497 Income tax benefit (67 ) (115 ) (426 ) (555 ) Total share-based compensation, net $ 3,439 $ 1,765 $ 10,435 $ 4,942 |
Earnings Per Share, Policy [Policy Text Block] | Income (Loss) Per Share Basic income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted income (loss) per share includes the dilutive effect of common shares potentially issuable upon the exercise of stock options, vesting of outstanding restricted stock and performance stock units and issuance of stock under our employee stock purchase plan using the treasury stock method. In loss periods, potentially dilutive securities are excluded from the per share computations due to their anti-dilutive effect. For purposes of computing diluted income (loss) per share, stock options with exercise prices that exceed the average fair market value of our common stock for the period are excluded. For the three nine September 28, 2019, 459,000 487,000 three September 29, 2018, no nine September 29, 2018, 12,000 The following table reconciles the denominators used in computing basic and diluted income (loss) per share ( in thousands) Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Weighted average common shares 41,229 28,948 41,075 28,814 Effect of dilutive securities - 822 - 836 41,229 29,770 41,075 29,650 Cohu has utilized the “control number” concept in the computation of diluted earnings per share to determine whether potential common stock instruments are dilutive. The control number used is income from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. |
Lessee, Leases [Policy Text Block] | Leases We adopted ASU 2016 02, 842 December 30, 2018. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the adoption date or the commencement date for leases entered into after the adoption date. As most of our leases do not The operating lease ROU asset also includes any lease payments made, lease incentives, favorable and unfavorable lease terms recognized in business acquisitions and excludes initial direct costs incurred and variable lease payments. Variable lease payments include estimated payments that are subject to reconciliations throughout the lease term, increases or decreases in the contractual rent payments as a result of changes in indices or interest rates and tax payments that are based on prevailing rates. Our lease terms may Leases with an initial term of 12 not We sublease certain leased assets to third None |
Revenue [Policy Text Block] | Revenue Recognition Our net sales are derived from the sale of products and services and are adjusted for estimated returns and allowances, which historically have been insignificant. We recognize revenue when the obligations under the terms of a contract with our customers are satisfied; generally, this occurs with the transfer of control of our systems, non-system products or services. In circumstances where control is not Revenue for established products that have previously satisfied a customer’s acceptance requirements is generally recognized upon shipment. In cases where a prior history of customer acceptance cannot be demonstrated or from sales where customer payment dates are not Certain of our equipment sales have multiple performance obligations. These arrangements involve the delivery or performance of multiple performance obligations, and transfer of control of performance obligations may Unsatisfied performance obligations primarily represent contracts for products with future delivery dates. At September 28, 2019, $12.2 one 606, not one We generally sell our equipment with a product warranty. The product warranty provides assurance to customers that delivered products are as specified in the contract (an “assurance-type warranty”). Therefore, we account for such product warranties under ASC 460, Guarantees 460 not The transaction price reflects our expectations about the consideration we will be entitled to receive from the customer and may not not Our contracts are typically less than one 606 one Accounts receivable represents our unconditional right to receive consideration from our customer. Payments terms do not one not no no On shipments where sales are not September 28, 2019, $16.2 $8.0 one $5.8 December 29, 2018, $10.8 $6.9 one $2.0 Net sales of our reportable segments, by type, are as follows (in thousands): Three Months Ended Nine Months Ended Net Sales (1) September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Systems: Semiconductor Test & Inspection $ 70,654 $ 42,278 $ 226,749 $ 152,846 PCB Test 6,853 N/A 22,232 N/A Non-systems: Semiconductor Test & Inspection 62,166 43,886 180,343 128,285 PCB Test 3,825 N/A 11,994 N/A Total net sales $ 143,498 $ 86,164 $ 441,318 $ 281,131 ( 1 After the acquisition of Xcerra on October 1, 2018 two Revenue by geographic area based upon product shipment destination ( in thousands Three Months Ended Nine Months Ended Net Sales September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 China $ 31,076 $ 23,628 $ 87,365 $ 63,011 United States 21,918 11,585 58,427 41,725 Taiwan 20,341 5,916 52,513 11,762 Malaysia 12,991 13,682 47,698 38,539 Philippines 12,330 11,158 38,266 31,620 Rest of the World 44,842 20,195 157,049 94,474 Total net sales $ 143,498 $ 86,164 $ 441,318 $ 281,131 A small number of customers historically have been responsible for a significant portion of our net sales. Significant customer concentration information, by reportable segment, is as follows: Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Semiconductor Test & Inspection (1) Customers individually accounting for more than 10% of net sales * one one one Percentage of net sales * 11.2% 11.0% 10.8% PCB Test Customers individually accounting for more than 10% of net sales * N/A * N/A Percentage of net sales * N/A * N/A * No 10% ( 1 After the acquisition of Xcerra on October 1, 2018 two |
Comprehensive Income, Policy [Policy Text Block] | Accumulated Other Comprehensive Loss Our accumulated other comprehensive loss balance totaled approximately $40.3 $25.9 September 28, 2019 December 29, 2018, not first nine 2019 2018 not |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Retiree Medical Benefits We provide post-retirement health benefits to certain retired executives, one no first nine 2019 2018 not |
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations Management has determined that the fixtures services business, that was acquired as part of Xcerra, does not December 29, 2018. 10, |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements We adopted ASU 2016 02, 842 December 30, 2018, We made an accounting policy election to not 12 not Adoption of the new standard resulted in the recording of additional net lease assets and lease liabilities of approximately $30.7 $29.9 December 30, 2018. 840 $10.2 840 $0.5 $0.6 not no Recently Issued Accounting Pronouncements In June 2016, 2016 13, Financial Instruments-Credit Losses (Topic 326 2016 13” May 2019, 2016 13 2019 04, Codification Improvements to Topic 326, 2019 04” 2019 05, Financial Instruments-Credit Losses (Topic 326 2019 05” 2016 13, not December 15, 2019, not In August 2018, 2018 14, Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans not December 15, 2020 not 2018 14 In August 2018, 2018 13, Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement not December 15, 2019. 3 not 2018 13 |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Notes Tables | |
Reclassification of Amounts on Income Statement [Table Text Block] | Three Months Ended As previously published Amortization of purchased intangible assets Foreign transaction gains (loss) As adjusted Cost of sales $ 51,786 (644 ) - $ 51,142 SG&A expense $ 16,511 (380 ) (232 ) $ 15,899 Nine Months Ended As previously published Amortization of purchased intangible assets Foreign transaction gains (loss) As adjusted Cost of sales $ 165,701 (1,959 ) - $ 163,742 SG&A expense $ 50,926 (1,158 ) 1,220 $ 50,988 |
Schedule of Inventory, Current [Table Text Block] | September 28, December 29, 2019 2018 Raw materials and purchased parts $ 70,677 $ 60,112 Work in process 44,997 57,953 Finished goods 18,249 21,249 Total inventories $ 133,923 $ 139,314 |
Property, Plant and Equipment [Table Text Block] | September 28, December 29, 2019 2018 Land and land improvements $ 11,916 $ 11,905 Buildings and building improvements 40,187 37,265 Machinery and equipment 63,451 64,791 115,554 113,961 Less accumulated depreciation and amortization (45,115 ) (39,629 ) Property, plant and equipment, net $ 70,439 $ 74,332 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Cost of sales $ 212 $ 125 $ 545 $ 408 Research and development 820 354 2,234 1,098 Selling, general and administrative 2,474 1,401 8,082 3,991 Total share-based compensation 3,506 1,880 10,861 5,497 Income tax benefit (67 ) (115 ) (426 ) (555 ) Total share-based compensation, net $ 3,439 $ 1,765 $ 10,435 $ 4,942 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Weighted average common shares 41,229 28,948 41,075 28,814 Effect of dilutive securities - 822 - 836 41,229 29,770 41,075 29,650 |
Disaggregation of Revenue [Table Text Block] | Three Months Ended Nine Months Ended Net Sales (1) September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 Systems: Semiconductor Test & Inspection $ 70,654 $ 42,278 $ 226,749 $ 152,846 PCB Test 6,853 N/A 22,232 N/A Non-systems: Semiconductor Test & Inspection 62,166 43,886 180,343 128,285 PCB Test 3,825 N/A 11,994 N/A Total net sales $ 143,498 $ 86,164 $ 441,318 $ 281,131 Three Months Ended Nine Months Ended Net Sales September 28, 2019 September 29, 2018 September 28, 2019 September 29, 2018 China $ 31,076 $ 23,628 $ 87,365 $ 63,011 United States 21,918 11,585 58,427 41,725 Taiwan 20,341 5,916 52,513 11,762 Malaysia 12,991 13,682 47,698 38,539 Philippines 12,330 11,158 38,266 31,620 Rest of the World 44,842 20,195 157,049 94,474 Total net sales $ 143,498 $ 86,164 $ 441,318 $ 281,131 |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Semiconductor Test & Inspection (1) Customers individually accounting for more than 10% of net sales * one one one Percentage of net sales * 11.2% 11.0% 10.8% PCB Test Customers individually accounting for more than 10% of net sales * N/A * N/A Percentage of net sales * N/A * N/A |
Note 2 - Business Acquisition_2
Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | Estimated Fair Value Weighted Average Useful Life (years) Developed technology $ 194,600 7.8 Customer relationships 65,890 10.6 In-process research and development 36,360 indefinite Product backlog 6,410 0.8 Trademarks and trade names 16,800 11.0 Favorable leases 1,100 5.5 Total intangible assets $ 321,160 September 28, 2019 December 29, 2018 Remaining Weighted Average Gross Amort. Gross Carrying Accum. Period Carrying Accum. Amount Amort. (in years) Amount Amort. Developed technology $ 223,454 $ 42,021 6.8 $ 214,266 $ 21,197 Customer relationships 71,720 12,815 9.5 73,104 7,378 Trade names 22,384 3,339 9.8 22,701 1,807 Backlog 6,279 6,279 0 6,372 4,696 Favorable leases* - - 4.6 1,100 62 Covenant not-to-compete 326 90 7.3 314 63 Total intangible assets $ 324,163 $ 64,544 $ 317,857 $ 35,203 |
Schedule of Goodwill [Table Text Block] | Semiconductor Test & Inspection (1) PCB Test Total Balance, December 30, 2017 $ 65,613 $ - $ 65,613 Additions, net 157,661 21,602 179,263 Impact of currency exchange (2,466 ) (283 ) (2,749 ) Balance, December 29, 2018 220,808 21,319 242,127 Adjustments (2) 2,117 (983 ) 1,134 Impact of currency exchange (6,603 ) (755 ) (7,358 ) Balance, September 28, 2019 $ 216,322 $ 19,581 $ 235,903 |
Xcerra [Member] | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Fair Value at Measurement Adjusted Acquisition Date Period Adjustments* Fair Value Current assets, including cash received $ 375,990 $ 375,990 Property, plant and equipment 40,729 40,729 Other assets 2,109 (1,058 ) 1,051 Intangible assets 321,160 321,160 Goodwill 179,263 1,134 180,397 Total assets acquired 919,251 919,327 Liabilities assumed (124,821 ) (76 ) (124,897 ) Net assets acquired $ 794,430 $ 794,430 |
Note 3 - Borrowings and Credi_2
Note 3 - Borrowings and Credit Agreements (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | September 28, December 29, 2019 2018 (1) Bank Term Loan under Credit Agreement $ 346,500 $ 349,125 Bank Term Loans-Kita 4,042 4,576 Bank Term Loan-Xcerra 1,524 1,839 Bank Term Loan-Rasco 3,720 - Lines of Credit 3,241 3,115 Total debt 359,027 358,655 Less: financing fees and discount (7,725 ) (8,551 ) Less: current portion (6,382 ) (6,676 ) Total long-term debt $ 344,920 $ 343,428 |
Note 4 - Restructuring Charges
Note 4 - Restructuring Charges (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Severance and Other Exit Other Payroll Costs Total Balance, December 29, 2018 $ 4,026 $ - $ 4,026 Costs accrued 10,167 553 10,720 Amounts paid or charged (9,251 ) (553 ) (9,804 ) Impact of currency exchange (137 ) - (137 ) Balance, September 28, 2019 $ 4,805 $ - $ 4,805 |
Note 5 - Financial Instrument_2
Note 5 - Financial Instruments Measured at Fair Value (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | September 28, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses (1) Value Foreign government security $ 573 $ - $ - $ 573 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses (1) Value Foreign government security $ 560 $ - $ - $ 560 |
Investments Classified by Contractual Maturity Date [Table Text Block] | September 28, 2019 December 29, 2018 Amortized Estimated Amortized Estimated Cost Fair Value Cost Fair Value Due after one year through three years $ 573 $ 573 $ 560 $ 560 |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair value measurements at September 28, 2019 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 132,065 $ - $ - $ 132,065 Money market funds - 13,029 - 13,029 Foreign government security - 573 - 573 $ 132,065 $ 13,602 $ - $ 145,667 Fair value measurements at December 29, 2018 using: Total estimated Level 1 Level 2 Level 3 fair value Cash $ 144,696 $ - $ - $ 144,696 Money market funds - 19,764 - 19,764 Foreign government security - 560 - 560 $ 144,696 $ 20,324 $ - $ 165,020 |
Note 8 - Segment and Geograph_2
Note 8 - Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, Net sales by segment: 2019 2018 2019 2018 Semiconductor Test & Inspection $ 132,820 $ 86,164 $ 407,092 $ 281,131 PCB Test 10,678 - 34,226 - Total consolidated net sales for reportable segments $ 143,498 $ 86,164 $ 441,318 $ 281,131 Segment profit (loss) before tax: Semiconductor Test & Inspection $ (2,929 ) $ 9,941 $ (32,373 ) $ 41,073 PCB Test 612 - 2,371 - Profit (loss) for reportable segments (2,317 ) 9,941 (30,002 ) 41,073 Other unallocated amounts: Corporate expenses (2,076 ) (3,162 ) (7,365 ) (10,483 ) Interest expense (5,000 ) (11 ) (15,789 ) (33 ) Interest income 190 337 603 913 Income (loss) from continuing operations before taxes $ (9,203 ) $ 7,105 $ (52,553 ) $ 31,470 September 28, December 29, 2019 2018 Semiconductor Test & Inspection $ 994,248 $ 1,038,053 PCB Test 57,739 57,762 Total assets for reportable segments 1,051,987 1,095,815 Corporate, principally cash and investments 15,759 34,367 Discontinued operations 3,863 3,820 Total consolidated assets $ 1,071,609 $ 1,134,002 |
Note 9 - Leases (Tables)
Note 9 - Leases (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Notes Tables | |
Leases, Balance Sheet Information [Table Text Block] | (in thousands) Classification September 28, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 34,096 Finance lease assets Property, plant and equipment, net (1) 2,482 Total lease assets $ 36,578 Liabilities Current Operating Other accrued liabilities $ 5,358 Finance Other accrued liabilities 2,528 Noncurrent Operating Long-term lease liabilities 29,397 Total lease liabilities $ 37,283 Weighted-average remaining lease term (years) Operating leases 7.9 Finance leases 0.8 Weighted-average discount rate Operating leases 6.3 % Finance leases 4.5 % |
Lease, Cost [Table Text Block] | Three Months Ended Nine Months Ended (in thousands) September 28, 2019 September 28, 2019 Operating leases (1) $ 2,142 $ 6,381 Variable lease expense 570 1,765 Short-term operating leases 80 224 Finance leases Amortization of leased assets 20 82 Interest on lease liabilities 29 117 Sublease income (31 ) (101 ) Net lease cost $ 2,810 $ 8,468 |
Lessee, Lease, Liability, Maturity [Table Text Block] | Operating Finance (in thousands) leases (1) leases Total 2019 $ 1,709 $ 37 $ 1,746 2020 7,133 2,576 9,709 2021 5,816 - 5,816 2022 5,369 - 5,369 2023 4,940 - 4,940 Thereafter 21,007 - 21,007 Total lease payments 45,974 2,613 48,587 Less: Interest (11,219 ) (85 ) (11,304 ) Present value of lease liabilities $ 34,755 $ 2,528 $ 37,283 |
Lease, Cash Flow Information [Table Text Block] | Nine Months Ended (in thousands) September 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,153 Operating cash flows from finance leases $ 109 Financing cash flows from finance leases $ 25 Leased assets obtained in exchange for new operating lease liabilities $ 39,815 |
Note 10 - Discontinued Operat_2
Note 10 - Discontinued Operations (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Xcerra [Member] | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | September 28, December 29, 2019 2018 Assets: Cash and cash equivalents $ 1,176 $ 461 Accounts receivable, net 1,466 1,718 Inventories 1,074 1,388 Other current assets 17 174 Total current assets 3,733 3,741 Property, plant and equipment, net 40 66 Other noncurrent assets 90 13 Total assets $ 3,863 $ 3,820 Liabilities: Other accrued current liabilities $ 564 $ 518 Total current liabilities 564 518 Noncurrent liabilities 34 - Total liabilities $ 598 $ 518 Three Months Ended Nine Months Ended September 28, September 28, 2019 2019 Net sales $ 1,720 $ 5,020 Operating income before income taxes $ 173 $ 400 Income tax provision 19 58 Income, net of tax $ 154 $ 342 |
Note 12 - Guarantees (Tables)
Note 12 - Guarantees (Tables) | 9 Months Ended |
Sep. 28, 2019 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Three Months Ended Nine Months Ended September 28, September 29, September 28, September 29, 2019 2018 2019 2018 Balance at beginning of period $ 6,852 $ 4,948 $ 8,014 $ 4,848 Warranty expense accruals 1,137 1,600 4,695 4,988 Warranty payments (2,071 ) (1,946 ) (6,791 ) (5,234 ) Balance at end of period $ 5,918 $ 4,602 $ 5,918 $ 4,602 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) $ in Thousands | Dec. 30, 2018USD ($) | Oct. 01, 2018USD ($) | Sep. 28, 2019USD ($)shares | Sep. 29, 2018USD ($)shares | Sep. 28, 2019USD ($)shares | Sep. 29, 2018USD ($)shares | Dec. 29, 2018USD ($) | |
Number of VIEs Consolidated | 1 | 1 | ||||||
Accounts Receivable, Allowance for Credit Loss, Current | $ 200 | $ 200 | $ 300 | |||||
Number of Operating Segments | 4 | |||||||
Number of Reportable Segments | 2 | |||||||
Goodwill and Intangible Asset Impairment, Total | $ 0 | |||||||
Amortization of Debt Issuance Costs and Discounts, Total | 300 | $ 0 | $ 826 | $ 0 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | $ 1,600 | $ (200) | $ 1,300 | $ 1,200 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 459,000 | 0 | 487,000 | 12,000 | ||||
Revenue, Remaining Performance Obligation, Amount | $ 12,200 | $ 12,200 | ||||||
Accounts Receivable, Credit Loss Expense (Reversal) | 0 | |||||||
Contract with Customer, Liability, Total | 0 | 0 | ||||||
Contract with Customer, Liability, Current | 16,200 | 16,200 | 10,800 | |||||
Deferred Profit | 7,952 | 7,952 | 6,896 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total | (40,260) | (40,260) | (25,880) | |||||
Assets, Total | 1,071,609 | 1,071,609 | 1,134,002 | [1] | ||||
Accounting Standards Update 2016-02 [Member] | ||||||||
Lease Assets | $ 30,700 | |||||||
Lease Liabilities | 29,900 | |||||||
Cumulative Effect on Retained Earnings, Net of Tax, Total | 10,200 | |||||||
Assets, Total | (500) | |||||||
Liabilities, Total | $ (600) | |||||||
Non-current Other Accrued Liabilities [Member] | ||||||||
Deferred Profit Recognized After Year One | $ 5,800 | $ 5,800 | $ 2,000 | |||||
Minimum [Member] | ||||||||
Standard Product Warranty Term | 1 year | |||||||
Maximum [Member] | ||||||||
Standard Product Warranty Term | 3 years | |||||||
Building [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment, Useful Life | 30 years | |||||||
Building [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment, Useful Life | 40 years | |||||||
Building Improvements [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment, Useful Life | 5 years | |||||||
Building Improvements [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment, Useful Life | 15 years | |||||||
Machinery, Equipment and Software [Member] | Minimum [Member] | ||||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||||
Machinery, Equipment and Software [Member] | Maximum [Member] | ||||||||
Property, Plant and Equipment, Useful Life | 10 years | |||||||
ALBS [Member] | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 80.00% | 80.00% | ||||||
Variable Interest Entity, Consolidated, Assets, Pledged, Total | $ 0 | $ 0 | ||||||
[1] | Derived from December 29, 2018 audited financial statements |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Reclassification (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Cost of sales | [1] | $ 84,565 | $ 51,142 | $ 265,564 | $ 163,742 |
SG&A expense | $ 33,690 | 15,899 | $ 108,404 | 50,988 | |
Previously Reported [Member] | |||||
Cost of sales | 51,786 | 165,701 | |||
SG&A expense | 16,511 | 50,926 | |||
Restatement Adjustment [Member] | Amortization of Purchased Intangibles [Member] | |||||
Cost of sales | (644) | (1,959) | |||
SG&A expense | (380) | (1,158) | |||
Restatement Adjustment [Member] | Foreign Transaction Gains and (Losses) [Member] | |||||
Cost of sales | |||||
SG&A expense | $ (232) | $ 1,220 | |||
[1] | Excludes amortization of $7,597 and $644 for the three months ended September 28, 2019, and September 29, 2018, respectively, and $22,863 and $1,959 for the nine months ended September 28, 2019, and September 29, 2018, respectively. |
Note 1 - Summary of Significa_5
Note 1 - Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 | |
Raw materials and purchased parts | $ 70,677 | $ 60,112 | |
Work in process | 44,997 | 57,953 | |
Finished goods | 18,249 | 21,249 | |
Total inventories | $ 133,923 | $ 139,314 | [1] |
[1] | Derived from December 29, 2018 audited financial statements |
Note 1 - Summary of Significa_6
Note 1 - Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 | |
Property, plant and equipment | $ 115,554 | $ 113,961 | |
Less accumulated depreciation and amortization | (45,115) | (39,629) | |
Property, plant and equipment, net | 70,439 | 74,332 | [1] |
Land and Land Improvements [Member] | |||
Property, plant and equipment | 11,916 | 11,905 | |
Building and Building Improvements [Member] | |||
Property, plant and equipment | 40,187 | 37,265 | |
Machinery and Equipment [Member] | |||
Property, plant and equipment | $ 63,451 | $ 64,791 | |
[1] | Derived from December 29, 2018 audited financial statements |
Note 1 - Summary of Significa_7
Note 1 - Summary of Significant Accounting Policies - Reported Share-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Allocated share-based compensation | $ 3,506 | $ 1,880 | $ 10,861 | $ 5,497 |
Income tax benefit | (67) | (115) | (426) | (555) |
Total share-based compensation, net | 3,439 | 1,765 | 10,435 | 4,942 |
Cost of Sales [Member] | ||||
Allocated share-based compensation | 212 | 125 | 545 | 408 |
Research and Development Expense [Member] | ||||
Allocated share-based compensation | 820 | 354 | 2,234 | 1,098 |
Selling, General and Administrative Expenses [Member] | ||||
Allocated share-based compensation | $ 2,474 | $ 1,401 | $ 8,082 | $ 3,991 |
Note 1 - Summary of Significa_8
Note 1 - Summary of Significant Accounting Policies - Computation of Basic and Diluted Income (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Weighted average common shares (in shares) | 41,229 | 28,948 | 41,075 | 28,814 |
Effect of dilutive securities (in shares) | 822 | 836 | ||
(in shares) | 41,229 | 29,770 | 41,075 | 29,650 |
Note 1 - Summary of Significa_9
Note 1 - Summary of Significant Accounting Policies - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | ||
Net sales | [1] | $ 143,498 | $ 86,164 | $ 441,318 | $ 281,131 |
Semiconductor Test and Inspection [Member] | |||||
Net sales | 132,820 | 86,164 | 407,092 | 281,131 | |
PCB Test [Member] | |||||
Net sales | 10,678 | 34,226 | |||
Systems [Member] | Semiconductor Test and Inspection [Member] | |||||
Net sales | [1] | 70,654 | 42,278 | 226,749 | 152,846 |
Systems [Member] | PCB Test [Member] | |||||
Net sales | [1] | 6,853 | 22,232 | ||
Non-systems [Member] | Semiconductor Test and Inspection [Member] | |||||
Net sales | [1] | 62,166 | 43,886 | 180,343 | 128,285 |
Non-systems [Member] | PCB Test [Member] | |||||
Net sales | [1] | 3,825 | 11,994 | ||
CHINA | |||||
Net sales | 31,076 | 23,628 | 87,365 | 63,011 | |
UNITED STATES | |||||
Net sales | 21,918 | 11,585 | 58,427 | 41,725 | |
TAIWAN, PROVINCE OF CHINA | |||||
Net sales | 20,341 | 5,916 | 52,513 | 11,762 | |
Malaysia [Member] | |||||
Net sales | 12,991 | 13,682 | 47,698 | 38,539 | |
PHILIPPINES | |||||
Net sales | 12,330 | 11,158 | 38,266 | 31,620 | |
Rest of the World [Member] | |||||
Net sales | $ 44,842 | $ 20,195 | $ 157,049 | $ 94,474 | |
[1] | After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Cohu's historical reported net sales would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly. |
Note 1 - Summary of Signific_10
Note 1 - Summary of Significant Accounting Policies - Customer Concentration (Details) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | |||||
Sep. 28, 2019 | [2] | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |||
Semiconductor Test and Inspection [Member] | |||||||
Customers individually accounting for more than 10% of net sales | [1] | 1 | 1 | 1 | |||
Semiconductor Test and Inspection [Member] | One Customer [Member] | |||||||
Percentage of net sales | [1] | 11.20% | 11.00% | 10.80% | |||
PCB Test [Member] | |||||||
Customers individually accounting for more than 10% of net sales | [1] | [2] | |||||
Percentage of net sales | [1] | [2] | |||||
[1] | After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Cohu's historical reported net sales would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly. | ||||||
[2] | No single customer represented more than 10% of consolidated net sales. |
Note 2 - Business Acquisition_3
Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Oct. 01, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 |
Share Price | $ 25.10 | |||||
Transfer From In-Process Technology to Developed Technology | $ 13,200 | |||||
Amortization of Intangible Assets, Total | $ 9,969 | $ 1,024 | 29,975 | $ 3,117 | ||
Secured Term Loan Facility [Member] | ||||||
Debt Instrument, Face Amount | $ 350,000 | |||||
Debt Instrument, Amortization, Percentage of Principal Amount | 0.25% | |||||
Secured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | |||||
Xcerra [Member] | ||||||
Business Combination, Consideration Transferred, Total | $ 794,400 | |||||
Payments to Acquire Businesses, Gross | 160,500 | |||||
Business Combination, Acquisition Related Costs | 400 | $ 5,200 | ||||
Xcerra [Member] | In-process Technology [Member] | ||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | $ 22,900 | $ 22,900 | $ 36,300 | |||
Xcerra [Member] | Fair Value Adjustment to Inventory [Member] | ||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | $ 19,600 | |||||
Xcerra [Member] | Common Stock [Member] | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 11,776,149 | |||||
Xcerra [Member] | Cohu RSUs [Member] | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 529,995 | |||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned, Attributed to Pre-Merger Services | $ 800 |
Note 2 - Business Acquisition_4
Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets - Purchase Price Allocation, Xcerra Acquisition (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 28, 2019 | Dec. 29, 2018 | [1] | Oct. 01, 2018 | Dec. 30, 2017 | ||
Goodwill | $ 235,903 | $ 242,127 | $ 65,613 | |||
Goodwill, adjustment | [2],[3] | 1,134 | ||||
Xcerra [Member] | ||||||
Current assets, including cash received | 375,990 | $ 375,990 | ||||
Property, plant and equipment | 40,729 | 40,729 | ||||
Other assets | 1,051 | 2,109 | ||||
Other assets, adjustment | [4] | (1,058) | ||||
Intangible assets | 321,160 | 321,160 | ||||
Goodwill | 180,397 | 179,263 | ||||
Goodwill, adjustment | [4] | 1,134 | ||||
Total assets acquired | 919,327 | 919,251 | ||||
Liabilities assumed | (124,897) | (124,821) | ||||
Liabilities assumed, adjustment | [4] | (76) | ||||
Net assets acquired | $ 794,430 | $ 794,430 | ||||
[1] | Derived from December 29, 2018 audited financial statements | |||||
[2] | After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Prior year amounts would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly. | |||||
[3] | Amounts represent adjustments made during the post-acquisition measurement period to the preliminary goodwill from the Xcerra acquisition. | |||||
[4] | Measurement period adjustments made as a result of obtaining new facts and circumstances related to certain assets acquired and liabilities assumed as of the date of acquisition. The net impact of the measurement period adjustments were offset against goodwill. |
Note 2 - Business Acquisition_5
Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets - Preliminary Allocation of Intangible Assets, Xcerra Acquisition (Details) - USD ($) $ in Thousands | Oct. 01, 2018 | Sep. 28, 2019 | Dec. 29, 2018 | |
Intangible assets, estimated fair value | $ 321,160 | |||
Gross carrying amount | $ 324,163 | $ 317,857 | ||
Accumulated amortization | $ 64,544 | 35,203 | ||
Remaining weighted average amortization period (Year) | ||||
In-process Technology [Member] | ||||
Finite-lived intangible assets, estimated fair value | 36,360 | |||
Developed Technology Rights [Member] | ||||
Finite-lived intangible assets, estimated fair value | $ 194,600 | |||
Finite-lived intangible assets, average useful life (Year) | 7 years 292 days | |||
Gross carrying amount | $ 223,454 | 214,266 | ||
Accumulated amortization | $ 42,021 | 21,197 | ||
Remaining weighted average amortization period (Year) | 6 years 292 days | |||
Customer Relationships [Member] | ||||
Finite-lived intangible assets, estimated fair value | $ 65,890 | |||
Finite-lived intangible assets, average useful life (Year) | 10 years 219 days | |||
Gross carrying amount | $ 71,720 | 73,104 | ||
Accumulated amortization | $ 12,815 | 7,378 | ||
Remaining weighted average amortization period (Year) | 9 years 182 days | |||
Order or Production Backlog [Member] | ||||
Finite-lived intangible assets, estimated fair value | $ 6,410 | |||
Finite-lived intangible assets, average useful life (Year) | 292 days | |||
Gross carrying amount | $ 6,279 | 6,372 | ||
Accumulated amortization | $ 6,279 | 4,696 | ||
Remaining weighted average amortization period (Year) | 0 years | |||
Trade Names [Member] | ||||
Finite-lived intangible assets, estimated fair value | $ 16,800 | |||
Finite-lived intangible assets, average useful life (Year) | 11 years | |||
Gross carrying amount | $ 22,384 | 22,701 | ||
Accumulated amortization | $ 3,339 | 1,807 | ||
Remaining weighted average amortization period (Year) | 9 years 292 days | |||
Off-Market Favorable Lease [Member] | ||||
Finite-lived intangible assets, estimated fair value | $ 1,100 | |||
Finite-lived intangible assets, average useful life (Year) | 5 years 182 days | |||
Gross carrying amount | [1] | 1,100 | ||
Accumulated amortization | [1] | 62 | ||
Remaining weighted average amortization period (Year) | [1] | 4 years 219 days | ||
Noncompete Agreements [Member] | ||||
Gross carrying amount | $ 326 | 314 | ||
Accumulated amortization | $ 90 | $ 63 | ||
Remaining weighted average amortization period (Year) | 7 years 109 days | |||
[1] | Favorable leases were reclassified from intangible assets, net to operating lease right of use assets on December 30, 2018 as a result of our adoption of ASU 2016-2, Leases (Topic 842) |
Note 2 - Business Acquisition_6
Note 2 - Business Acquisitions, Goodwill and Purchased Intangible Assets - Acquired Goodwill Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 28, 2019 | Dec. 29, 2018 | ||||
Balance | $ 242,127 | [1] | $ 65,613 | ||
Additions, net | 179,263 | ||||
Impact of currency exchange | (7,358) | (2,749) | |||
Adjustments | [2],[3] | 1,134 | |||
Balance | 235,903 | 242,127 | [1] | ||
Semiconductor Test and Inspection [Member] | |||||
Balance | [2] | 220,808 | 65,613 | ||
Additions, net | [2] | 157,661 | |||
Impact of currency exchange | [2] | (6,603) | (2,466) | ||
Adjustments | [2],[3] | 2,117 | |||
Balance | [2] | 216,322 | 220,808 | ||
PCB Test [Member] | |||||
Balance | 21,319 | ||||
Additions, net | 21,602 | ||||
Impact of currency exchange | (755) | (283) | |||
Adjustments | [2],[3] | (983) | |||
Balance | $ 19,581 | $ 21,319 | |||
[1] | Derived from December 29, 2018 audited financial statements | ||||
[2] | After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Prior year amounts would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly. | ||||
[3] | Amounts represent adjustments made during the post-acquisition measurement period to the preliminary goodwill from the Xcerra acquisition. |
Note 3 - Borrowings and Credi_3
Note 3 - Borrowings and Credit Agreements (Details Textual) $ in Thousands, € in Millions, SFr in Millions | Jul. 26, 2019EUR (€) | Oct. 01, 2018USD ($) | Sep. 28, 2019USD ($) | Sep. 28, 2019CHF (SFr) | Dec. 29, 2018USD ($) |
Long-term Debt, Current Maturities, Total | $ 6,382 | $ 6,676 | |||
Long-term Line of Credit, Total | 3,241 | 3,115 | |||
Ismeca [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | SFr | SFr 2 | ||||
Long-term Line of Credit, Total | $ 0 | $ 0 | |||
Number of Available Lines of Credit | 1 | 1 | |||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,900 | ||||
Long-term Line of Credit, Total | 3,300 | ||||
Secured Term Loan Facility [Member] | |||||
Debt Instrument, Face Amount | $ 350,000 | ||||
Debt Instrument, Amortization, Percentage of Principal Amount | 0.25% | ||||
Long-term Debt, Total | 338,800 | ||||
Long-term Debt, Current Maturities, Total | 2,400 | ||||
Long-term Debt, Fair Value | 332,200 | ||||
Secured Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||||
Kita Term Loans [Member] | |||||
Long-term Debt, Total | 4,000 | ||||
Long-term Debt, Current Maturities, Total | $ 500 | ||||
Kita Term Loans [Member] | Minimum [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.05% | 0.05% | |||
Kita Term Loans [Member] | Maximum [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 0.44% | 0.44% | |||
Xcerra Term Loan [Member] | |||||
Long-term Debt, Total | $ 1,500 | ||||
Long-term Debt, Current Maturities, Total | $ 300 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.35% | 2.35% | |||
Debt Instrument, Term | 10 years | ||||
Rasco Term Loan [Member] | |||||
Debt Instrument, Face Amount | € | € 3.4 | ||||
Long-term Debt, Total | $ 3,700 | ||||
Long-term Debt, Current Maturities, Total | $ 0 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.80% | ||||
Debt Instrument, Term | 10 years |
Note 3 - Borrowings and Credi_4
Note 3 - Borrowings and Credit Agreements - Summary of Borrowings (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Lines of Credit | $ 3,241 | $ 3,115 |
Total debt | 359,027 | 358,655 |
Less: financing fees and discount | (7,725) | (8,551) |
Less: current portion | (6,382) | (6,676) |
Total long-term debt | 344,920 | 343,428 |
Secured Term Loan Facility [Member] | ||
Term loan | 346,500 | 349,125 |
Less: current portion | (2,400) | |
Kita Term Loans [Member] | ||
Term loan | 4,042 | 4,576 |
Less: current portion | (500) | |
Xcerra [Member] | ||
Term loan | 1,524 | 1,839 |
Rasco Term Loan [Member] | ||
Term loan | 3,720 | |
Less: current portion | $ 0 |
Note 4 - Restructuring Charge_2
Note 4 - Restructuring Charges (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Restructuring Charges, Total | $ 814 | $ 10,720 |
Note 4 - Restructuring Charge_3
Note 4 - Restructuring Charges - Charges Related to the Wind Down Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Restructuring Charges, Total | $ 814 | $ 10,720 | ||
Integration Program [Member] | ||||
Accrued restructuring, beginning balance | 4,026 | |||
Restructuring Charges, Total | 10,720 | |||
Amounts paid or charged | (9,804) | |||
Impact of currency exchange | (137) | |||
Accrued restructuring, ending balance | 4,805 | 4,805 | ||
Employee Severance [Member] | Integration Program [Member] | ||||
Accrued restructuring, beginning balance | 4,026 | |||
Restructuring Charges, Total | 10,167 | |||
Amounts paid or charged | (9,251) | |||
Impact of currency exchange | (137) | |||
Accrued restructuring, ending balance | 4,805 | 4,805 | ||
Other Restructuring [Member] | Integration Program [Member] | ||||
Accrued restructuring, beginning balance | ||||
Restructuring Charges, Total | 553 | |||
Amounts paid or charged | (553) | |||
Impact of currency exchange | ||||
Accrued restructuring, ending balance |
Note 5 - Financial Instrument_3
Note 5 - Financial Instruments Measured at Fair Value (Details Textual) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value, Total | $ 0 | $ 0 |
Note 5 - Financial Instrument_4
Note 5 - Financial Instruments Measured at Fair Value - Short-term Investments by Security Type (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 | ||
Short-term investments | $ 573 | $ 560 | [1] | |
Debt Security, Government, Non-US [Member] | ||||
Amortized Cost | 573 | 560 | ||
Gross Unrealized Gains | ||||
Gross Unrealized Losses | [2] | |||
Short-term investments | $ 573 | $ 560 | ||
[1] | Derived from December 29, 2018 audited financial statements | |||
[2] | As of September 28, 2019 and December 29, 2018, there were no investments in our portfolio in a loss position. |
Note 5 - Financial Instrument_5
Note 5 - Financial Instruments Measured at Fair Value - Effective Maturities of Short-term Investments (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
Due after one year through three years, amortized cost | $ 573 | $ 560 |
Due after one year through three years, fair value | $ 573 | $ 560 |
Note 5 - Financial Instrument_6
Note 5 - Financial Instruments Measured at Fair Value - Assets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 |
$ 145,667 | $ 165,020 | |
Debt Security, Government, Non-US [Member] | ||
Short-term investments | 573 | 560 |
Cash [Member] | ||
Cash and cash equivalents | 132,065 | 144,696 |
Money Market Funds [Member] | ||
Cash and cash equivalents | 13,029 | 19,764 |
Fair Value, Inputs, Level 1 [Member] | ||
132,065 | 144,696 | |
Fair Value, Inputs, Level 1 [Member] | Debt Security, Government, Non-US [Member] | ||
Short-term investments | ||
Fair Value, Inputs, Level 1 [Member] | Cash [Member] | ||
Cash and cash equivalents | 132,065 | 144,696 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Cash and cash equivalents | ||
Fair Value, Inputs, Level 2 [Member] | ||
13,602 | 20,324 | |
Fair Value, Inputs, Level 2 [Member] | Debt Security, Government, Non-US [Member] | ||
Short-term investments | 573 | 560 |
Fair Value, Inputs, Level 2 [Member] | Cash [Member] | ||
Cash and cash equivalents | ||
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | ||
Cash and cash equivalents | 13,029 | 19,764 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Inputs, Level 3 [Member] | Debt Security, Government, Non-US [Member] | ||
Short-term investments | ||
Fair Value, Inputs, Level 3 [Member] | Cash [Member] | ||
Cash and cash equivalents | ||
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | ||
Cash and cash equivalents |
Note 6 - Employee Stock Benef_2
Note 6 - Employee Stock Benefit Plans (Details Textual) $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 28, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 36,650 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 368,276 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares | $ 10.34 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ | $ 1.2 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 3 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 368,276 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 10.34 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 1.2 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 670,737 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 560,795 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 1,331,427 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ | $ 17.8 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 146 days |
Restricted Stock Units (RSUs) [Member] | Vesting Over One Year Period [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year |
Restricted Stock Units (RSUs) [Member] | Vesting Over Four Year Period [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 167,226 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 35,696 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 364,194 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ | $ 4.9 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 219 days |
Equity Based Performance Stock Units Granted in 2018, 2017, and 2016 [Member] | Vest on the Third Anniversary of Awards Grant [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% |
Minimum [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue | 25.00% |
Maximum [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Shares Available for Issue | 200.00% |
Equity Incentive Plan 2005 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,507,028 |
Equity Incentive Plan 2005 [Member] | Share-based Payment Arrangement, Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years |
Equity Incentive Plan 2005 [Member] | Minimum [Member] | Share-based Payment Arrangement, Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year |
Equity Incentive Plan 2005 [Member] | Maximum [Member] | Share-based Payment Arrangement, Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years |
Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,034,612 |
Stock Issued During Period, Shares, New Issues | 63,998 |
Note 7 - Income Taxes (Details
Note 7 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Effective Income Tax Rate Reconciliation, Percent, Total | (13.90%) | 32.40% | (0.30%) | 21.90% |
Unrecognized Tax Benefits, Period Increase (Decrease), Total | $ 0 | $ 0 | $ 0 | $ 0 |
Note 8 - Segment and Geograph_3
Note 8 - Segment and Geographic Information - Summary of Current Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | |||
Net sales | [1] | $ 143,498 | $ 86,164 | $ 441,318 | $ 281,131 | ||
Profit (loss) for reportable segments | (2,317) | 9,941 | (30,002) | 41,073 | |||
Interest expense | (5,000) | (11) | (15,789) | (33) | |||
Interest income | 190 | 337 | 603 | 913 | |||
Income (loss) from continuing operations before taxes | (9,203) | 7,105 | (52,553) | 31,470 | |||
Total assets for reportable segments | 1,071,609 | 1,071,609 | $ 1,134,002 | [2] | |||
Total assets | 3,863 | 3,863 | 3,820 | ||||
Corporate, Non-Segment [Member] | |||||||
Corporate expenses | (2,076) | (3,162) | (7,365) | (10,483) | |||
Total assets for reportable segments | 15,759 | 15,759 | 34,367 | ||||
Semiconductor Test and Inspection [Member] | |||||||
Net sales | 132,820 | 86,164 | 407,092 | 281,131 | |||
Profit (loss) for reportable segments | (2,929) | 9,941 | (32,373) | 41,073 | |||
Total assets for reportable segments | 994,248 | 994,248 | 1,038,053 | ||||
PCB Test [Member] | |||||||
Net sales | 10,678 | 34,226 | |||||
Profit (loss) for reportable segments | 612 | 2,371 | |||||
Total assets for reportable segments | 57,739 | 57,739 | 57,762 | ||||
Semiconductor Test and Inspection and PCB Test [Member] | |||||||
Total assets for reportable segments | $ 1,051,987 | $ 1,051,987 | $ 1,095,815 | ||||
[1] | After the acquisition of Xcerra on October 1, 2018 we report in two segments, Semiconductor Test & Inspection and PCB Test. Cohu's historical reported net sales would have been reported in our Semiconductor Test & Inspection segment and have been presented accordingly. | ||||||
[2] | Derived from December 29, 2018 audited financial statements |
Note 9 - Leases (Details Textua
Note 9 - Leases (Details Textual) $ in Millions | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Lessee, Operating Lease, Renewal Term | 25 years |
Finance Lease Right-of-use Asset, Accumulated Amortization | $ 0.1 |
Operating Lease, Impairment Loss | 0.2 |
Lessee, Sublease Income, Receivable, Remainder of Fiscal Year | 0.1 |
Lessee, Sublease Income, Receivable, Year Two | $ 0.1 |
Minimum [Member] | |
Lessee, Lease, Remaining Term of Contract | 1 year |
Maximum [Member] | |
Lessee, Lease, Remaining Term of Contract | 38 years |
Note 9 - Leases - Balance Sheet
Note 9 - Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Dec. 29, 2018 | [1] | |
Operating lease assets | $ 34,096 | |||
Finance lease assets | [2] | 2,482 | ||
Total lease assets | 36,578 | |||
Operating | 29,397 | |||
Total lease liabilities | $ 37,283 | |||
Operating leases (Year) | 7 years 328 days | |||
Finance leases (Year) | 292 days | |||
Operating leases | 6.30% | |||
Finance leases | 4.50% | |||
Other Accrued Liabilities [Member] | ||||
Operating | $ 5,358 | |||
Finance | $ 2,528 | |||
[1] | Derived from December 29, 2018 audited financial statements | |||
[2] | Finance lease assets are recorded net of accumulated amortization of $0.1 million. |
Note 9 - Leases - Lease Expense
Note 9 - Leases - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 28, 2019 | Sep. 28, 2019 | ||
Operating leases (1) | [1] | $ 2,142 | $ 6,381 |
Variable lease expense | 570 | 1,765 | |
Short-term operating leases | 80 | 224 | |
Amortization of leased assets | 20 | 82 | |
Interest on lease liabilities | 29 | 117 | |
Sublease income | (31) | (101) | |
Net lease cost | $ 2,810 | $ 8,468 | |
[1] | Operating lease cost excludes impairment expense of $0.2 million related to the write-down of the Fontana facility right-of-use asset. |
Note 9 - Leases - Future Minimu
Note 9 - Leases - Future Minimum Lease Payments (Details) $ in Thousands | Sep. 28, 2019USD ($) | |
2019, operating leases | $ 1,709 | [1] |
2019, finance leases | 37 | |
2019, total | 1,746 | |
2020, operating leases | 7,133 | [1] |
2020, finance leases | 2,576 | |
2020, total | 9,709 | |
2021, operating leases | 5,816 | [1] |
2021, finance leases | ||
2021, total | 5,816 | |
2022, operating leases | 5,369 | [1] |
2022, finance leases | ||
2022, total | 5,369 | |
2023, operating leases | 4,940 | [1] |
2023, finance leases | ||
2023, total | 4,940 | |
Thereafter, operating leases | 21,007 | [1] |
Thereafter, finance leases | ||
Thereafter, total | 21,007 | |
Total lease payments, operating leases | 45,974 | [1] |
Total lease payments, finance leases | 2,613 | |
Total lease payments, total | 48,587 | |
Less: Interest, operating leases | (11,219) | [1] |
Less: Interest, finance leases | (85) | |
Less: Interest, total | (11,304) | |
Present value of lease liabilities, operating leases | 34,755 | [1] |
Present value of lease liabilities, finance leases | 2,528 | |
Present value of lease liabilities, total | $ 37,283 | |
[1] | Excludes sublease income of $0.1 million in both 2020 and 2021. |
Note 9 - Leases - Cash Flow Inf
Note 9 - Leases - Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Operating cash flows from operating leases | $ 5,153 |
Operating cash flows from finance leases | 109 |
Financing cash flows from finance leases | 25 |
Leased assets obtained in exchange for new operating lease liabilities | $ 39,815 |
Note 10 - Discontinued Operat_3
Note 10 - Discontinued Operations - Balance Sheet Information and Operating Results for Fixture Services Business (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | ||
Assets: | ||||||
Total current assets | $ 3,733 | $ 3,733 | $ 3,741 | [1] | ||
Total assets | 3,863 | 3,863 | 3,820 | |||
Liabilities: | ||||||
Total current liabilities | 564 | 564 | 518 | [1] | ||
Noncurrent liabilities | 34 | 34 | [1] | |||
Income, net of tax | 154 | 342 | ||||
Xcerra [Member] | ||||||
Liabilities: | ||||||
Net sales | 1,720 | 5,020 | ||||
Operating income before income taxes | 173 | 400 | ||||
Income tax provision | 19 | 58 | ||||
Income, net of tax | 154 | 342 | ||||
Xcerra [Member] | Discontinued Operations, Held-for-sale [Member] | ||||||
Assets: | ||||||
Cash and cash equivalents | 1,176 | 1,176 | 461 | |||
Accounts receivable, net | 1,466 | 1,466 | 1,718 | |||
Inventories | 1,074 | 1,074 | 1,388 | |||
Other current assets | 17 | 17 | 174 | |||
Total current assets | 3,733 | 3,733 | 3,741 | |||
Property, plant and equipment, net | 40 | 40 | 66 | |||
Other noncurrent assets | 90 | 90 | 13 | |||
Total assets | 3,863 | 3,863 | 3,820 | |||
Liabilities: | ||||||
Other accrued current liabilities | 564 | 564 | 518 | |||
Total current liabilities | 564 | 564 | 518 | |||
Noncurrent liabilities | 34 | 34 | ||||
Total liabilities | $ 598 | $ 598 | $ 518 | |||
[1] | Derived from December 29, 2018 audited financial statements |
Note 12 - Guarantees (Details T
Note 12 - Guarantees (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 28, 2019 | Dec. 29, 2018 | |
Non-current Other Accrued Liabilities [Member] | ||
Product Warranty Accrual, Noncurrent | $ 0.2 | $ 0.2 |
Minimum [Member] | ||
Standard Product Warranty Term | 1 year | |
Maximum [Member] | ||
Standard Product Warranty Term | 3 years |
Note 12 - Guarantees - Changes
Note 12 - Guarantees - Changes in Accrued Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | |
Balance at beginning of period | $ 6,852 | $ 4,948 | $ 8,014 | $ 4,848 |
Warranty expense accruals | 1,137 | 1,600 | 4,695 | 4,988 |
Warranty payments | (2,071) | (1,946) | (6,791) | (5,234) |
Balance at end of period | $ 5,918 | $ 4,602 | $ 5,918 | $ 4,602 |